thornside
join:2004-02-15
Oxford, MA
| New Tax Recovery fee
Anyone get this email?
Dear Valued Verizon Online DSL Member,
Thank you for choosing Verizon Online DSL as your Internet service provider.
Please note, starting February 20, 2005, you will begin seeing a monthly Tax Recovery Fee on your DSL service bill. This is not a
tax charged directly to Verizon Online's customers, but the partial recovery of tax that Verizon Online must pay when they purchase
the DSL circuit from the telephone company.
This fee will be eliminated after the recently passed expansion of the Internet Tax Nondiscrimination Act becomes effective in
November 2005 until November 2007. Since this is not a direct tax but is the recovery of a tax paid by Verizon Online, there are no
applicable exemptions. More information is available online at www.verizon.net/myaccount.
We appreciate and value your business.
Sincerely,
Verizon Online
Broadband Customer Care Team |
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Chris123NT
join:2001-11-24
Nesconset, NY | Yup i got it. |
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KevNYC
Premium
join:2002-03-31
Seattle, WA | reply to thornside
Yea i got it too, anyone know how much it'll be? Is it me or is the price slowly increasing. |
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lrmayer
join:2000-02-19
Arlington, VA
| Yea, I got it also. Went to the page -- blank -- finally found it and the amount varies by state. Some states are "zero" as here in Virginia, and it goes as high as 11% in DC ($2.96 per month) with most being about 6% roughly $1.62 per month.
According to the announcement, this amount will disappear in November of this year -- and is related to state charges and taxes (although as we all know these fees have been absorbed in the past -- so yes it is really a temporary price increase)
The problem I see is that this will work for Verizon until total base charges and fees start to approach alternatives -- and then alternatives might be more attractive if they have higher speeds, which most, but not all, now do. |
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Cariad
Logo Queen
Premium,ExMod 2001-03
join:2000-07-02
Staten Island, NY
clubs:
| reply to thornside
I'm not understanding this at all. They're saying they have to pay tax when they purchase the dsl circuit from the telephone company - but they are the telephone company, the lines already belong to them, so how come they have to buy them?
What am I missing? |
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Grail Knight
Who Dares Wins
Premium
join:2003-05-31
 ·Verizon Online DSL
| reply to thornside
PA. is going up like a buck and some change even though Verizon is the company and owns the lines. Sounds like a scam to make some extra loot thinking users will not know that Verizon owns the lines already.  |
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mishaq
Premium
join:2004-01-24
Richardson, TX
clubs: | reply to Cariad
I'm guess this is more FCC mumbo jumbo. Verizon Online isnt the telephone company, Verizon is. Verizon Online is a separate ISP. Not sure of the details but it sure sounds idiotic.
--
Damn you FCC! |
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Paul928
join:2000-05-06
Haverhill, MA | reply to thornside
Yea I got the same email too......Pretty soon the taxes and FCC fees we pay, will be more than the DSL service itself. |
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DHRacer
Fire Survivor
join:2000-10-10
Lake Arrowhead, CA
 ·Charter Pipeline
·Verizon west (ex G..
| reply to Cariad
Same thing I'm missing...a brain apparently.
Do they think we are really this dumb that we won't notice that?
Verizon anything is Verizon.
That's like Chevy saying they are going to charge extra because they have to buy the cars they sell from GM.
Say What?
--
"No one will believe you solved this problem in one day! We've been working on it for months. Now, go act busy for a few weeks and I'll let you know when it's time to tell them." (R&D Supervisor, Minnesota Mining & Manufacturing /3M Corp.) |
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DHRacer
Fire Survivor
join:2000-10-10
Lake Arrowhead, CA
·Charter Pipeline
·Verizon west (ex G..
| reply to thornside
So do we all get refunds in November?
Or is Verizon just in need of some quick cash for their bottom line and this is how they get it?
How many more of these temporary taxes can we take? I mean the tax from the war of 1812 was supposedly temporary, too!
--
"No one will believe you solved this problem in one day! We've been working on it for months. Now, go act busy for a few weeks and I'll let you know when it's time to tell them." (R&D Supervisor, Minnesota Mining & Manufacturing /3M Corp.) |
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peterl1365
join:2005-01-03
Murrieta, CA | Would FIOS be exempt from this fee? |
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peterl1365
join:2005-01-03
Murrieta, CA | reply to thornside
No percentage listed for California. But, it doesn't say that it is zero percent, either. |
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zoom314
Superman
Premium
join:2001-04-30
Yermo, CA
| reply to thornside
said by thornside  :Anyone get this email? Dear Valued Verizon Online DSL Member, Thank you for choosing Verizon Online DSL as your Internet service provider. Please note, starting February 20, 2005, you will begin seeing a monthly Tax Recovery Fee on your DSL service bill. This is not a tax charged directly to Verizon Onlines customers, but the partial recovery of tax that Verizon Online must pay when they purchase the DSL circuit from the telephone company. This fee will be eliminated after the recently passed expansion of the Internet Tax Nondiscrimination Act becomes effective in November 2005 until November 2007. Since this is not a direct tax but is the recovery of a tax paid by Verizon Online, there are no applicable exemptions. More information is available online at www.verizon.net/myaccount. We appreciate and value your business. Sincerely, Verizon Online Broadband Customer Care Team Yeah I got It too. And I'm in California, Hopefully It won't be much as I'm on a fixed Budget and My food costs are going up. |
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RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA
1 edit | reply to thornside
I got it today too, I'm in Covina out in the San Gabriel Valley in So Cal. |
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HD_Ride
Premium
join:2000-10-18
Trenton, NJ
 ·VoicePulse
 ·Verizon FIOS
| reply to Paul928
said by Paul928 :Yea I got the same email too......Pretty soon the taxes and FCC fees we pay, will be more than the DSL service itself. Good point, I have a basic $6 POTS (actually less) and the taxes & fees are more than the service itself? they will just keep piling it on and there is no end to it |
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nycdave
Premium,MVM
join:1999-11-16
Melville, NY
·Verizon FIOS
| reply to DHRacer
said by DHRacer :Same thing I'm missing...a brain apparently. Do they think we are really this dumb that we won't notice that? Verizon anything is Verizon. That's like Chevy saying they are going to charge extra because they have to buy the cars they sell from GM. Say What? No, Verizon is not Verizon in this case. VOL is an ISP which buys the DSL circuit capacity (DSLAM port, backhaul circuit, etc) from Verizon the ILEC. VOL is just like any other ISP who needs to purchase DSL circuits from the local ILEC or CLEC...Speakeasy is a good example of another ISP who needs to buy the DSL circuit from the CLEC (Covad or others)...
The Chevy to GM analogy is not accurate in this case.
HTH! |
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RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA | You'd think if they are under the same company, they could figure out a way NOT to charge each other! |
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OnTheNet
Premium
join:2004-04-13
Broadview Heights, OH
| They are not the same company from what the memo implies. VOL is an affiliate subsidary of Verizon the Telco under the rules of the Telecommunications Act of 1996 and Computer II & III rules.
It is my understanding that VOL operates under Computer III rules and is a seperate subsidary.
In summary...
If a BOC (Bell Operating Company)wishes to have an ISP, it can either do so pursuant to Computer II with a separate subsidiary, or pursuant to Computer III... Under Computer II, the affiliated ISP must be in a separate subsidiary.
Under Computer III, the affiliated ISP does not have to be in a separate subsidiary, but the BOC must release a comparatively efficient interconnection (CEI) plan, explaining how, whatever the BOC provides to its affiliated ISP, it will provide to all other unaffiliated ISPs on the same terms and conditions.
You may also find this interesting as well.
»hraunfoss.fcc.gov/edocs_public/a···49A1.pdf
On December 20, 2004, the Verizon Telephone Companies (Verizon) filed a petition for forbearance from applying Title II and the Computer Inquiry rules to any broadband services offered by Verizon. This petition raises issues similar to those in the petition for forbearance filed by BellSouth Telecommunications, Inc. on October 27, 2004 WC Docket 04-405. |
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Cariad
Logo Queen
Premium,ExMod 2001-03
join:2000-07-02
Staten Island, NY
clubs:
1 edit | reply to thornside
So if they're not the same company, why is it you have to have verizon phone service to get verizon dsl, and if you cancel verizon phone service you loose verizon dsl?
My school has covad, over verizon lines, does this mean we're going to see a tax increase on the bill also? |
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nycdave
Premium,MVM
join:1999-11-16
Melville, NY
·Verizon FIOS
| reply to RR Conductor
said by RR Conductor :You'd think if they are under the same company, they could figure out a way NOT to charge each other! I guess you are not familiar with how every large business in the world operates. Even different departments within corporations have to 'charge' their expenses to a budget, even if the budget is the 'corporate' budget. Verizon is a highly regulated business, so the rules are more 'defined', mainly by the FCC and the various state commissions. Since Verizon has literally dozens of different affiliated companies and subsidiaries, they have to account for their charges to other affiliates through 'affiliate transactions', which are highly regulated and subject to SEC and FCC audits. These affiliate transactions are referred to as section 271 (Verizon ILEC) and section 272 (non-regulated subsidiary company - VOL) transactions (the sections refer to the Telecom Act of 1996). This is how VOL and 'Verizon the ILEC' account for charges between the companies. Even though VOL operates under the Verizon umbrella, they still must be a separate and distinct company.
HTH! |
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